Embraer and ATR Bond With AEROChain

Embraer has launched a new online electronic marketplace in conjunction with turboprop builder ATR, software provider Oracle, and KPMG Consulting.

Called AEROChain, the new enterprise represents a $21 million investment from Embraer and ATR, and is expected to be fully operational by the middle of 2002.

"Our goal is to trade the majority of Embraer parts through this venture," said Embraer CEO Mauricio Botelho, during the kickoff ceremony at Le Bourget. "This is an answer to customer requests to put our web programs on a stronger platform."

According to Embraer customer services VP Artur Coutinho, all of Embraer's technical publications will be accessible via the new site, along with troubleshooting tips for maintainers.

A variety of other options will be offered as well, including reverse auctions, spare parts forecasting, and supply chain management. Using the system, operators will even be able to check on the status of aircraft undergoing heavy maintenance checks.

Embraer field-tested the concept between January and April of this year, trials that involved a few selected customers and the Legacy CIS (Customer Integration System)-Embraer's current presence on the Internet.

Embraer says it logged $1.9 million in sales during the test, demonstrating the potential of the "business-to-business" marketplace.

ATR has a 10% stake in the partnership; KPMG Consulting and Oracle each have a 6% investment. KPMG will manage the overall project, while Oracle will provide its Oracle Exchange software package.

"This is not just another dot.com company," Coutinho adds. "The structure chosen uses Embraer's brick-and-mortar image to reinforce the idea of a hybrid company producing real goods to the public through the worldwide web."

By Paul Richfield